SCD: FedEx rolls out rate discounts through Pitney Bowes, Auctane platforms

SUPPLY CHAIN DIVE reports:

The discounts, via FedEx Platform Account agreements, apply to shipping options across FedEx’s full service portfolio. The announcements didn’t disclose the full extent of the reductions, but Pitney Bowes previously said that customers could see FedEx discounts of up to 90% through ShipAccel.

Discounts provided within shipping platforms — which UPS and the U.S. Postal Service offer as well — are particularly useful for small and medium-sized businesses. These companies would otherwise have to negotiate for lower rates on their own, a tall order for shippers without enough order activity to drum up volume-based discounts.

The arrangement also benefits carriers by making their rates more attractive for a sizable pool of potential customers using these platforms. For example, Auctane said it has millions of customers in the U.S. and Canada, and its technology powers more than 3 billion e-commerce orders annually.

For years, FedEx’s lack of platform rates made it harder to compete with UPS for small and medium-sized business volume…

To read the full post, please click here.